OUTOTEC OYJ FINANCIAL STATEMENTS REVIEW FEBRUARY 13, 2017 AT 9.00 AM
FINANCIAL STATEMENTS REVIEW JANUARY-DECEMBER 2016
Good development in Minerals Processing business
January-December 2016 in brief (comparison period January-December 2015):
- Order intake: EUR 1,008 (1,190) million, -15% (in comparable currencies -12%)
- Service order intake: EUR 443 (497) million, -11% (in comparable currencies -6%)
- Order backlog: EUR 1,002 (1,103) million, -9%
- Sales: EUR 1,058 (1,201) million, -12% (in comparable currencies -9%)
- Service sales: EUR 447 (511) million, -13% (in comparable currencies -8%)
- EBIT: EUR -68 (-12) million
- Adjusted EBIT*: EUR -23 (56) million
- Adjusted EBIT*: -2 (5)%
- Net cash flow from operating activities: EUR -85 (70) million
- Earnings per share: EUR -0.42 (-0.10)
- Due to the negative net result in 2016, the Board of Directors proposes to the AGM that no dividend is paid for the year 2016
October-December 2016 in brief (comparison period October-December 2015):
- Order intake: EUR 283 (267) million, 6% (in comparable currencies 6%)
- Service order intake: EUR 108 (109) million, -1% (in comparable currencies -3%)
- Sales: EUR 305 (306) million, 0% (in comparable currencies -1%)
- Service sales: EUR 127 (138) million, -8% (in comparable currencies -8%)
- EBIT: EUR -53 (-31) million
- Adjusted EBIT*: EUR -25 (18) million
- Adjusted EBIT*: -8 (6)%
Financial guidance for 2017
Guidance for 2017 is based on the current order backlog and market outlook as well as achieved cost savings.
- Sales are expected to be approximately EUR 1,050-1,150 million, and
- Adjusted EBIT* is expected to be approximately 3-5%
* Excluding restructuring and acquisition-related costs as well as purchase price allocation amortizations.
Summary of the Group's key figures
|Order intake, EUR million||282.7||267.2||1,007.7||1,189.9|
|Service order intake, EUR million||107.8||109.3||443.3||496.6|
|Share of services in order intake, %||38.2||40.9||44.0||41.7|
|Order backlog at the end of the period, EUR million||1,002.1||1,102.8||1,002.1||1,102.8|
|Sales, EUR million||305.4||305.7||1,057.9||1,201.2|
|Service sales, EUR million||127.4||138.0||447.0||511.3|
|Share of services in sales, %||41.7||45.1||42.3||42.6|
|Gross margin, %||15.6||26.4||22.1||27.9|
|Adjusted EBIT1, EUR million||-24.8||17.6||-23.0||56.0|
|Adjusted EBIT1, %||-8.1||5.8||-2.2||4.7|
|EBIT, EUR million||-53.5||-30.6||-67.7||-12.3|
|Result before taxes, EUR million||-56.6||-32.1||-78.1||-22.9|
|Net cash from operating activities, EUR million||-11.9||47.7||-84.6||69.5|
|Net interest-bearing debt at the end of the period, EUR million||-4.52||39.9||-4.52||39.9|
|Equity at the end of the period, EUR million||498.1||404.7||498.1||404.7|
|Equity-to-assets ratio at the end of the period, %||40.02||31.1||40.02||31.1|
|Gearing at the end of the period, %||-0.92||9.9||-0.92||9.9|
|Working capital at the end of the period, EUR million||-23.5||-89.4||-23.5||-89.4|
|Return on investment, %, LTM||-9.4||-1.5||-9.4||-1.5|
|Return on equity, %, LTM||-15.4||-4.0||-15.4||-4.0|
|Personnel at the end of the period||4,192||4,859||4,192||4,859|
|Earnings per share, EUR||-0.30||-0.13||-0.42||-0.10|
1 Excluding restructuring and acquisition-related costs and PPA amortizations.
2 If the hybrid bond were treated as a liability the equity-to-assets ratio would be 27.9%, gearing 41.8%, and net interest-bearing debt EUR 145.5 million.
President & CEO Markku Teräsvasara:
"In 2016, our two business segments were in different phases. The order intake in the Minerals Processing segment started to increase from the second quarter, which together with the achieved cost savings, contributed to the segment's good profitability. The segment ended the year with a solid order backlog, and the market is expected to continue to bring new opportunities. The Metals, Energy & Water segment's order intake remained weak. However, we saw positive signs in the market towards the end of the year. Due to the segment's lower order backlog, we have initiated further cost saving actions. Increased risk provisions especially in one large project significantly weakened the segment's result.
In services, the recurring spare parts and technical maintenance orders grew slightly from 2015, and the growth accelerated towards the end of the year. Large shutdown service and new operation & maintenance contracts declined from the comparison period. The new Services business unit, which will start operations in April, will prioritize and develop our offering, as well as strengthen our customer service. Our strong global installed base brings us attractive service business opportunities.
We expect our profitability to improve due to the pick up in the Minerals Processing segment as well as our cost-saving actions. Securing large orders will, in addition to cost savings action, remain crucial to stabilize the Metals, Energy & Water segment and to achieve sales growth in this segment.
The sentiment in the mining industry has improved. However, the global economical and political environment remains uncertain."
This text is a summary of Outotec's January-December 2016 Financial Statements review. The full report is available as an attachment to this report.
Markku Teräsvasara, CEO
Tel. +358 20 529 211
Jari Ålgars, CFO
Tel. +358 20 529 2007
Rita Uotila, Vice President - Investor Relations
Tel. +358 20 529 2003, mobile +358 400 954 141
Format for e-mail addresses: firstname.lastname@example.org
Date: Monday, February 13, 2017
Time: 2:00 PM
Venue: Outotec House, Rauhalanpuisto 9, Espoo, Finland
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FINANCIAL REPORTING SCHEDULE IN 2017
- Interim Report for January-March 2017: May 4
- Interim Report for January-June 2017: July 27
- Interim Report for January-September 2017: November 2
The Financial Statements for 2016 will be published in week 9 of 2017. The 2017 Annual General Meeting is planned for March 30, 2017.
|Outotec's Financial Statements Review January-December 2016||Download|